California urges people to cash in their IOUs

There sure was a lot of grumbling when the state issued IOUs in lieu of some payments last summer, so why have so many people still not cashed theirs in?

The California controller’s office reports that more than 89,000 people and businesses are sitting on about $50 million worth of uncashed IOUs, which stopped earning interest Sept. 4.

All told, the state issued about 450,000 IOUs worth $2.6 billion between July 2 and Sept. 3 of last year. The state began redeeming them Sept. 4.

In San Francisco alone, 2,315 IOUs worth $1.4 million are still outstanding. In Santa Clara county, 4,070 IOUs worth $2.4 million have not been redeemed.

On Friday, the state controller’s and treasurer’s offices will begin mailing letters to people who have not redeemed their IOUs, officially called registered warrants. The letter will include redemption instructions and a pre-addressed envelope.

Holders can mail them for redemption to 915 Capitol Mall, Attention Registered Warrant Desk, Sacramento, CA 95814. They can be redeemed in person at that address on weekdays between 9 a.m. and 3 p.m. Some banks will cash them for customers, although a fee may apply.

The State Treasurer’s Office operates a toll-free telephone Help Line to answer questions about the redemption process at 1-888-864-2762. Representatives are available Monday through Friday from 7 a.m. to 4 p.m. An automated version of the Help Line is available 24 hours a day, seven days a week.